Q: When should capital
gains tax be paid on the transaction of a non-resident who sold his town house? He didn't complete tax
returns in previous years because the rental income is under the tax threshold .
Must he wait till 2015 tax season and then complete a tax return?
A: The obligation for a natural person to register for income tax per section
67 of the Income Tax Act is when such person becomes liable for normal tax or
is required to submit a tax return (GG 37767). The taxpayer has become liable
for both in our view in respect of the rental income and should become
compliant in respect of such periods. In respect of the townhouse disposal,
this will be disclosed in the annual tax return for that year in which the
disposal occurred and any tax liability will become payable after assessment.
click here to view the government notice regarding persons
required to submit an income tax return.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.